Globe, Metrobank sign P7-b loan deal
Globe Telecom Inc., a unit of conglomerate Ayala Corp. said Friday it borrowed P7 billion from Metropolitan Bank & Trust Co. to finance part of this year’s capital expenditures.
Globe signed a 10-year, P5 billion and 7-year $45-million or P2-billion term loan with Metrobank.
“This new loan facility from Metrobank will help us address the demands of our customers in their continuing shift to a digital lifestyle. Globe is committed to invest in additional network capacities to handle the robust growth in data traffic from our customers,” Globe chief financial officer Alberto de Larrazabal said.
The company has programmed $650 million or P29 billion in capital expenditures this year. Globe spent about P11.4 billion in capital expenditures in the first half of 2015.
Globe is allocating the bulk of the investment for data-related projects, including the company’s broadband network, capacities for wireless data, LTE and domestic and international transmission facilities.
Globe’s core net income, which excludes the impact of non-recurring items, amounted to P8.6 billion in the January-to-June period from P7.6 billion year-on-year
Globe’s core profit in the second quarter reached P4.4 billion from P4.2 billion on year.
The second-ranked telecommunications company reported a net income of P8.7 billion in the first six months of the year from P6.8 billion on year. Net profit in the second quarter amounted to P4.5 billion from P3.9 billion on year.
Globe’s consolidated service revenues stood at P53.8 billion, 13 percent higher than P47.7 billion a year ago, on the strength of robust revenue gains on mobile data and broadband, as more customers adopted a digital lifestyle.
Globe posted a record consolidated service revenues of P27.6 billion in the second quarter of the year from P24.5 billion on year.
The mobile business posted a 10 percent year-on-year growth in revenues to P41.6 billion in the six-month period from P37.8 billion on year, due to the strong contributions across all brands.
Globe’s mobile subscriber base reached 48.4 million at the end of June, up 13 percent from 42.7 million a year ago, driven by record gross acquisitions this period.
The healthy growth in mobile revenues was fueled by the surge in mobile data revenues, which reached P9.5 billion as of end-June, up 53 percent from P6.2 billion reported a year ago.
Broadband revenues stood at P7.6 billion as of end June 2015, with total subscriber base reaching close to 3.5 million.
The solid growth in revenues was driven by subscriber expansion in both the wireless, increasing by 64 percent and wired services by 14 percent.
Globe’s fixed line data business increased 20 percent to P3.1 billion in the first half of the year from P2.6 billion last year, due mainly to the expansion in circuit count and increased usage triggered by the strong demand for data connectivity, managed services and cloud solutions.